Yes this was big news here in Australia a few months ago.

A few hosts even went as far as relocating their lives, and businesses, to non extradition countries (like Cuba, Russia, the Middle East, and South America) to avoid prosecution.

Australia, Canada, the U.K. and U.S. government agencies all belong to the Virtual Global Task Force.

Any Australian, or Australian business, that hosts sites catering to pedophiles or CP have the following penalties.. no matter where in the world they reside, unless it's a non extradition country "An ISP or ICH will now face penalties of $11,000 for the individual and $55 000 for body corporates if they are made aware that their service can be used to access material that they have reasonable grounds to believe is child pornography or child abuse material"

Child pornography in Australia is described differently then in the U.S.

"Child pornography material means material that:

* depicts, represents or describes a person under 18 years of age who is engaged in, or appears to be engaged in, a sexual pose or sexual activity or is in the presence of a person who is engaged in, or appears to be engaged in, a sexual pose or sexual activity, and
* does this in a way that reasonable persons would regard as being, in all the circumstances, offensive.

Child pornography material also includes material the dominant characteristic of which is the depiction, representation, or description, for a sexual purpose, of a sexual organ or the anal region of a person under 18 years of age"